Bullish Percent Index

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market_indicators:bullish_percent_index [2019/06/24 19:38]
127.0.0.1 external edit
market_indicators:bullish_percent_index [2023/10/06 14:56] (current)
jayanthi [Symbols Available]
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 ====== Bullish Percent Index ====== ====== Bullish Percent Index ======
  
-===== Introduction ​=====+===== What Is the Bullish Percent Index? ​=====
  
-The Bullish Percent Index (BPI) is a breadth indicator based on the number of stocks on [[:​chart_analysis:​pnf_charts:​pnf_alerts#​p_f_buy_signal|Point & Figure Buy Signals]] within an index. ​Developed by Abe Cohen in the mid-1950s, the Bullish Percent Index was originally applied to NYSE stocks. Cohen was the first editor ​of ChartCraft, which later became Investors Intelligence. BPI signals were further refined ​by Earl Blumenthal in the mid 70's and Mike Burke in the early 80's. Because a stock is either ​on a P&F Buy or Sell Signal, there is no ambiguity when it comes to P&F charts. This makes BPI a straightforward indicator with clearly defined signals. This article will cover six different Bullish Percent Index signals derived from Point & Figure charts: bull/bear confirmed, bull/bear alerts and bull/bear correction.+The Bullish Percent Index (BPI) is a breadth indicator based on the number of stocks on [[:​chart_analysis:​pnf_charts:​pnf_alerts#​p_f_buy_signal|Point & Figure Buy Signals]] within an index. ​The BPI helps you understand ​the internal health ​of an index by looking at the number of components that are on a bullish ​or bearish track
  
-===== Calculation ===== +Abe Cohen developed the indicator in the mid-1950s. The Bullish Percent Index was originally applied to NYSE stocks. Cohen was the first editor of ChartCraft, which later became Investors Intelligence. Earl Blumenthal further refined BPI signals in the mid-70s and Mike Burke in the early 80's. Because a stock is either on a P&F buy or sell signal, there is no ambiguity when it comes to P&F charts. This makes BPI a straightforward indicator with clearly defined signals. We'll look at six different Bullish Percent Index signals derived from Point & Figure charts: bull/bear confirmed, bull/bear alerts, and bull/bear correction.
  
-The calculation is straightforward ​and simple+===== How Is the Bullish Percent Index Calculated? =====  
 + 
 +The calculation is straightforward. ​
  
 <​code>​ <​code>​
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-Bullish Percent calculations ​are done using traditional box sizing and 3-box reversal P&F charts.+Bullish Percent calculations ​use traditional box sizing and 3-box reversal P&F charts.
  
 ===== P&F Patterns =====  ===== P&F Patterns ===== 
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 {{:​market_indicators:​bullish_percent_index:​bpi-2-sixpercent.png|Bullish Percent Index - Chart 2}} {{:​market_indicators:​bullish_percent_index:​bpi-2-sixpercent.png|Bullish Percent Index - Chart 2}}
  
-===== Interpretation ​===== +===== Interpreting the Bullish Percent Index ===== 
  
-The Bullish Percent Index (BPI) fluctuates between 0% and 100%. StockCharts.com calculates BPI for a number of sectors, industry groups, and indices. The indicator'​s range and volatility largely depend on the number of stocks in the underlying index. An index with 30 or fewer stocks, such as the Gold Miners Index, Dow Industrials or Dow Transports, may reach 0% or 100% on occasion. Indices with over 2000 stocks, such as the Nasdaq and NYSE, are highly ​unlikely to reach 0% or 100%. Indices ​with fewer stocks are also more volatile because ​it takes fewer stocks to move the Bullish Percent Index. ​+The Bullish Percent Index (BPI) fluctuates between 0% and 100%. StockCharts.com calculates BPI for a number of sectors, industry groups, and indices. The indicator'​s range and volatility largely depend on the number of stocks in the underlying index. An index with 30 or fewer stocks, such as the Gold Miners Index, Dow Industrialsor Dow Transports, may occasionally ​reach 0% or 100%. Indices with over 2000 stocks, such as the Nasdaq and NYSE, are unlikely to reach 0% or 100%. Indexes ​with fewer stocks are also more volatile because ​moving ​the Bullish Percent Index takes fewer stocks
  
-In its most basic form, the Bullish Percent Index favors ​the bulls when above 50% and the bears when below 50%. The bulls have the edge when over 50% of stocks are on a P&F Buy Signal. BPI is also considered overbought when above 70% and oversold when below 30%. In addition to these basic interpretations,​ three signal pairings have evolved ​over the years (decades). Below is a description covering the basic elements ​for these signals. Cohen, Blumenthal, and Burke also used specific BPI levels to qualify ​some of their signals, such as 30%, 49%, 50%, 52%, 68% and 70%. The signals in this article focus on the basic elements.  ​+In its most basic form, the Bullish Percent Index favors bulls when it'​s ​above 50% and bears when below 50%. The bulls have the edge when over 50% of stocks are on a P&F Buy Signal. BPI is considered overbought when above 70% and oversold when below 30%. In addition to these basic interpretations,​ three signal pairings have evolved. Below is a description covering the basic elements ​of these signals. Cohen, Blumenthal, and Burke also used specific BPI levels to qualify signals, such as 30%, 49%, 50%, 52%, 68% and 70%. The signals in this article focus on the basic elements.  ​
  
   * Bull Alert: BPI is below 30% and then forms a new column of X's (rises)   * Bull Alert: BPI is below 30% and then forms a new column of X's (rises)
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 {{:​market_indicators:​bullish_percent_index:​bpi-7-bearcorrect.png|Bullish Percent Index - Chart 7}} {{:​market_indicators:​bullish_percent_index:​bpi-7-bearcorrect.png|Bullish Percent Index - Chart 7}}
  
-===== Conclusion ​=====+===== The Bottom Line =====
  
-The Bullish Percent Index offers something for all sorts of traders. Bottom pickers can look for bullish reversals below 30%. Top pickers can look for bearish reversals above 70%. These are the more risky entries because tops and bottoms can extend over time. There may also be a test of the prior lows or prior highs. Trend followers can look for bullish reversals occurring above the 50% level. A bullish bias is already present when over 50% of stocks are on P&F Buy Signals. A new column of X's above 50% signals renewed strength when the bias is already ​bullish. A bearish bias exists when below the 50% threshold. A new column of O's signals renewed weakness when the bias is already bearish. Traders can use the Bullish Percent Indices to define a trading bias before looking for trades in individual stocks or ETFs. Buy Signals are preferred when the Bullish Percent Index favors the bulls. Sell Signals are preferred when the Bullish Percent Index favors the bears. ​It is important to use the Bullish Percent Index in conjunction ​with other [[:​technical_indicators:​introduction_to_technical_indicators_and_oscillators|indicators]].+The Bullish Percent Index offers something for all sorts of traders. Bottom pickers can look for bullish reversals below 30%. Top pickers can look for bearish reversals above 70%. These are the more risky entries because tops and bottoms can extend over time. There may also be a test of the prior lows or prior highs. Trend followers can look for bullish reversals occurring above the 50% level. A bullish bias is already present when over 50% of stocks are on P&F Buy Signals. A new column of X's above 50% signals renewed strength when the bias is bullish. A bearish bias exists when below the 50% threshold. A new column of O's signals renewed weakness when the bias is already bearish. Traders can use the Bullish Percent Indices to define a trading bias before looking for individual stocks or ETFs to trade. Buy Signals are preferred when the Bullish Percent Index favors the bulls. Sell Signals are preferred when the Bullish Percent Index favors the bears. ​Using the Bullish Percent Index together ​with other [[:​technical_indicators:​introduction_to_technical_indicators_and_oscillators|indicators]] ​is important.
  
 ===== Symbols Available =====  ===== Symbols Available ===== 
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 Predefined CandleGlance charts can be viewed for the [[https://​stockcharts.com/​freecharts/​candleglance.html?​[BPI]|Major BPI symbols]] or the [[https://​stockcharts.com/​freecharts/​candleglance.html?​[BPISECT]|Sector BPI Symbols]], or users can create their own. The default CandleGlance page shows these as line charts. Users can change to P&F charts by going to the "​duration"​ settings at the bottom and changing to "point & figure"​.  ​ Predefined CandleGlance charts can be viewed for the [[https://​stockcharts.com/​freecharts/​candleglance.html?​[BPI]|Major BPI symbols]] or the [[https://​stockcharts.com/​freecharts/​candleglance.html?​[BPISECT]|Sector BPI Symbols]], or users can create their own. The default CandleGlance page shows these as line charts. Users can change to P&F charts by going to the "​duration"​ settings at the bottom and changing to "point & figure"​.  ​
  
-Alternatively,​ chartists can make individual charts for any of our BPI symbols. StockCharts.com users can access [[https://​stockcharts.com/​search/?​q=%22Bullish%20Percent%20Indices%22&​section=symbols|an up-to-date list of symbols]] for all our Bullish Percent Indices. From this list, click the "​Mentions"​ icon to the right of a specific symbol for more details about the symbol, as well as recent mentions in Public ChartLists, blog articles, and more.  ​+Alternatively,​ chartists can make individual charts for any of our BPI symbols. StockCharts.com users can access [[https://​stockcharts.com/​search/?​blogAuthor=&​q=%22Bullish%20Percent&​section=symbols|an up-to-date list of symbols]] for all our Bullish Percent Indices. From this list, click the "​Mentions"​ icon to the right of a specific symbol for more details about the symbol ​and recent mentions in Public ChartLists, blog articles, and more.  ​
 ===== SharpCharts ===== ===== SharpCharts =====